Glossary term
QE (Quantitative Easing)
Central bank asset purchases that expand the balance sheet and inject liquidity; an expansionary, risk-asset-friendly regime.
QE (Quantitative Easing) is central bank purchasing of bonds and other assets to expand its balance sheet and inject liquidity when policy rates are already low. It suppresses long-term yields and pushes investors toward risk assets, making it a powerful tailwind for equities. QE defined the post-2008 and pandemic-era bull markets and is the opposite of quantitative tightening. See QT and Money Temperature 101.